Whilst the public may have celebrated a reduction in VAT, fleet managers and small business owners were more concerned by the Chancellor's announcement that fuel duty would increase by 2p. However, news that diesel prices have fallen below £1 per litre will give many a reason to be cheerful this Christmas.
Prices reached an all time high in July of £1.33 per litre, but again a war of prices broke out on supermarket forecourts, with Morrisons leading the charge. In only 6 months, the price of diesel has fallen by an average of 34p per litre meaning that the average family-sized car now costs £18 less to fill!
Many commentators, including Fleet News, believe that oil prices will continue to fall in response to the global recession. Indeed, the World Bank estimates that the cost of oil will fall to $75 a barrel and will then only begin to recover in 2011.
Keep an eye on those pumps - prices should fall even further!
